Shake-up within BP ranks: Hayward out, Dudley new CEO

More than three months of controversy and weeks of speculation are finally over.

BP announced early this morning that embattled CEO Tony Hayward will step down on October 1st.

Hayward released a written statement which says in part:

"BP will be a changed company as a result of Macondo (the well which exploded) and it is right that it should embark on its next phase under new leadership."

"It became obvious to him and to us that in order to rebuild our position, in order to rebuild our brand and reputation we needed fresh leadership and that is why we are doing the change," BP chairman Carl-Henric Svanberg said.

That difficult change will be led by the man currently in charge of the recovery effort in the Gulf.

Bob Dudley, the current Managing Director of BP, will become the first American to lead the company in its' 100-year history.

Dudley has defended BP's commitment to the recovery effort in the gulf

and today the company, which initially pledged $20 billion to clean-up and damages account, announced it has set aside more than $32 billion to cover the costs from the spill.